Morning Highlights

Our Focus For Today Is On Small Cap, Property, Oil and Gas Sector

Banks and property counters led Singapore market higher in opening trade today after US stocks climbed overnight. STI gapped up 20.81 points to open at 2915.36, breaking the 2900 psychological level. 

Japan’s benchmark Nikkei 225 Average touched a high of 10,773.14, its strongest intraday level since October 2008, following gains on Wall Street. The index was up 1% at 10,759.15 in early trading Tuesday, while the Topix was up 1.1% at 926.15.

News Updates:

  1. Credit Suisse Group AG has been sued for US$24 billion by property owners who said the Swiss bank schemed to defraud investors in several resort communities, including the bankrupted Yellowstone Club.

  2. US stocks raced higher in the first trades of 2010, with sentiment boosted by a global market rally that was helped by corporate deal making and upbeat economic news from China. Dow industrials rally 156 points, finishing at their highest level since October 2008.

  3. IMF Forecast to reflect “somewhat more upbeat expectations” about the world economy: Lipsky (Business Times)

  4. Crude oil rose to US$80 a barrel amid thin trading volumes yesterday, the first trading day of 2010, partly supported by news that Russia had halted oil supplies to Belarussian refineries.

Quick Picks: Here is a quick pick screen that we have designed to pick out potential stocks, both Bullish and Bearish. These are measured with emphasis on larger changes in price and volume. 

Bullish Stocks (Singapore)

Symbol

Name

Entry

SL

TSL

TP

Remarks
1 E3B Wee Hur Holdings 0.59 0.545 0.635
2 HIPI Hi-P International 0.745 0.71 0.78
3 BRCA BRC Asia Ltd 0.255 0.195 0.315
4 SGXL Singapore Exchange Ltd 8.35 8.21 8.49
5 SIAT Singapore Airport Terminal Services 2.78 2.67 2.89
6 STRL Straits Asia Resources 2.68 2.53 2.83
7 D5N Z-Obee Holdings 0.29 0.175 0.405
8 EPIL Epure International 0.785 0.715 0.855
9 GUCL GuocoLeisure 0.72 0.68 0.76
10 Hock Lian Seng 0.315 0.285 0.345 Overnight, Current Price at 0.335
11 IFAR Indofood Agri Resources 2.20 2.06 2.34 Overnight, Current Price at 2.44
12 QMDT Q & M Dental Group 0.595 0.555 0.635 Overnight, Current Price at 0.61
13 HBEE Ho Bee Investment 1.81 1.73 1.89 Overnight, Current Price at 1.84
14 KLAN Keppel Land 3.55 3.44 3.66 Overnight, Current Price at 3.58
15 FEGL Falcon Energy Group 0.81 0.765 0.855 Overnight, Current Price at 0.82

Here’s Our Mid Term Holding Opportunities:

Symbol

Name

Entry

SL

TSL

TP

Remarks
1 OCBC Overseas Chinese Banking Corp 8.83 8.15 8.55 9.51 Overnight, Current Price at 9.04
2 KLAN Keppel Land 3.38 3.14 3.62 Overnight, Current Price at 3.58
3 UTOS UOL Group 4.06 3.20 3.74 4.92 Overnight, Current Price at 4.18
4 DBSM DBS Group 15.48 14.34 14.40 16.96 Triggered, Current Price at 15.44
5 STEG Singapore Technologies Engineering 3.27 3.00 3.54  
6 IFAR Indofood Agri Resources 2.20 1.94 2.46 Overnight, Current Price at 2.44
7 NOBL Noble Group 3.29 2.95 3.63 Triggered, Current Price at 3.28

Stock Prices last updated at 9:47 (Singapore Time)

Here’s a brief summary to look at the contributing factors that led to STI rise in 2009: 3 Driving Forces

  1. sharp and swift recovery of economy, where GDP rising from double digit negative to positive in terms of growth
  2. weaken US dollar that causes more liquidity inflow to the Asian Markets.
  3. government stimulus package, including cut in corporate tax rate and job credit scheme

The STI ended off the year with the highest close since 1 August 2008, staging a slow but steady 4-day ascent to 2,897.6 (+2.1% week-on-week [wow]). Year-on-Year, the local bourse was up by 64.5%.

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